Denplan Payments and VAT

Information for Companies

In a case decided at the end of last year, the Court of Appeal decided that the charge levied by companies such as Denplan for collecting payment from patients is not exempt for payment of VAT.

I am no accountant but this seems to me to mean that the charge for collecting such payments will go up by 20%. That is about 14p. I do not know whether Denplan has decided to swallow the increase but taking into account the size of the charge, I doubt this. I would be interested to hear of your experiences.

That means that dentists will have to pay the additional sum as they are unable to recover the VAT. Whether there are ways that a dental practice can be structured so that this vatable item is taken into a body which can reclaim the VAT, will need to be discussed with the accountants.

For more information please contact Hugh Ellins on 01793 511055 or hugh.ellins@clmlaw.co.uk